Government's spending watchdog to probe $300m taxpayer funded tourism fund

The Strategic Tourism Assets Protection Programme is under the Auditor-General microscope. Photo / supplied

The Government's spending watchdog has revealed its plans to probe a controversial government funding scheme put in place to save "strategic" tourism businesses

Auditor-General John Ryan this morning revealed he had decided to carry out an inquiry into "aspects of the Government's Strategic Tourism Assets Protection Programme".

This programme was established in May 2020 as part of the Government's response to Covid-19, specifically when it came to New Zealand's embattled tourism sector.

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The programme's aim was to provide money to, what it called "strategically important tourism assets" which contribute significantly to their local region and to tourism in the country as a whole.

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So far, more than $290 million has been committed to the tourism sector through the programme.

But Ryan said that concerns about the programme had been raised both with his office and in the media.

"Tourism businesses have questioned the clarity and transparency of the programme's criteria and whether they were applied consistently.

"Because of the concerns we have heard, the amount of public funding involved, and the importance of robust processes to ensure public trust and confidence is not eroded, we have decided to carry out an inquiry."

The inquiry will look into how the applications from tourism businesses have been assessed against the programme's criteria.

Under the microscope will be:

• The information available to potential applicants about the programme's eligibility criteria and assessment process.

• How applications from tourism businesses have been assessed, including the three businesses that received funding approval before the formal application round began.

• Whether there is any evidence that applications have been assessed inconsistently.

• Any other related matter that we consider it desirable to report on.

The inquiry will focus on the actions and processes involved with the initial eligibility assessments, and the subsequent steps which had been taken.

The merits of individual applications or particular funding decision, however, will not be looked into.